The following is the trial balance of GPS Ltd. (a trading company) as on 31 December 2020: Dr ($) Cr ($) Ordinary shares $1 50,000 10% preference shares $1 10,000 8% debentures 15,000 General reserve 6,000 Revaluation reserve 5,000 Share premium 5,000 Profit and loss account 01.01.2020 1,000 Plant and machinery (at cost) 100,000 Accumulated depreciation: Plant and machinery (as at 01.01.2020) 10,000 Stock 01.01.2020 7.100 Trade debtors / creditors 7,500 3.750 Provision for bad and doubtful debts 200 Bank 6,400 Purchases / Sales 93,000 135,350 Wages and salaries 18,250 Preference dividends 500 Debenture interest 600 General expenses 7.950 241,300 241.300 The following additional information is available: (a) Stock as at 31.12.2020 was valued at $11,750. (b) Plant and machinery is to be depreciated at the rate of 5% per annum straight line on cost. (c) The provision for bad and doubtful debts is to be at 5 % of debtors. (d) $600 of debenture interest and $750 of general expenses are to be accrued. (e) $475 of general expenses have been paid in advance. (1) The company pays tax on profits at a rate of 20 per cent. (9) An ordinary dividend of 10% has been proposed and $500 of preference share dividends are to accrued. (h) The directors have decided to increase the general reserve by a further $1,500. Required: Prepare (i) the Profit and Loss Account of GPS Ltd. for the year ended 31 December 2020 and (ii) the Balance Sheet as at 31 December 2020 based on the net worth format; both statements to be prepared in vertical format and for internal use. Do NOT include the Profit and Loss Account you have prepared in your answers. Your answers require just a one word / short answer (for example 5A(1) $20,000). Calculate the value of the goods available for sale. Answer: (1) Calculate the cost of Goods Sold. Answer: (ii) Calculate the Gross Profit of GPS Ltd. Answer: (iv) How much did GPS Ltd. spend on "General Expenses for the financial year ended 31 December 2020? Answer: (V) How much of the allowance / provision for bad and doubtful debts will be shown in the Profit and Loss Account of GPS Ltd. for the year ended 31 December 2020? (vi) Calculate the annual depreciation on the plant and machinery of the company. Answer: (vii) Calculate the annual interest expense of GPS Ltd. for the year ended 31 December Answer: 2020. Answer: (vill) One of the following items will not be shown in the P&L Account of GPS Ltd. (a) Operating profit (b) Profit After Tax. (c) Profit Before Tax. (d) Income from Investment Answer: shares for the year ended 31 December 2020. (ix) Calculate the tax to be paid by GPS Ltd. for the financial year ended 31 December 2020. Answer: (x) Calculate the total amount of annual dividends approved on the company's ordinary Answer: (xi) Calculate the total amount of annual dividends approved on the company's preference shares (xii) One of the following items will not be shown in the Appropriation Section of the Answer: P&L Account of GPS Ltd.: (a) Preference share dividends - interim paid. (6) Ordinary share dividends - interim paid. () Preference share dividends - proposed / accrued. (d) Ordinary share dividends - proposed. Answer: (xi) One of the following items should not be shown in the Appropriation Section of the P&L Account of GPS Ltd.: (a) Transfer to General Reserve. (b) Retained profit for the year. (c) Net Profit After tax. d) Preference share dividends - interim paid. Answer: (xiv) Calculate the balance in the Profit and Loss Account (Retained Profits) which will be carried forward at the end of 31 December 2020 by GPS Lid to the next financial year? Answer: Answer the following questions based on the Balance Sheet of GPS Ltd as at 31 December 2020 which you have prepared above. All your answers to be expressed in dollars ($) unless otherwise stated. Do NOT include the Balance Sheet you have prepared in your answers. Your answers require just a one word / short answer (for example 5B(0) $20,000). (i) Calculate the accumulated depreciation on Plant and Machinery as shown in the Balance Sheet of GPS Ltd. as at 31 December 2020. Answer: (ii) Calculate the net book value of the plant and machinery which will be shown in the Balance sheet of GPS Ltd. as at 31 December 2020. Answer: (ii) How much is the value of the allowance / provision for bad and doubtful debts which will be shown in the balance sheet of GPS Ltd. as at 31 December 2020? Answer: (iv) How much is the working capital of GPS Ltd. as at 31 December 2020? Answer: (v) How much is the capital employed of GPS Ltd. as at 31 December 2020? Answer: (vi) From the balance sheet prepared, how much dividends had still not been paid yet by GPS Ltd. to its preference shareholders at the end of 2020? Answer: (vii) From the balance sheet prepared, what is the balance in the "General Reserve" account of GPS Ltd. as at 31 December 2020? Answer: (viii) What is the net worth of GPS Ltd. as at 31 December 2020